NEWARK, N.J. - A Somerset County doctor practicing internal medicine at Newark Community Health Center, where she was formerly the clinical director, was sentenced today to six months in prison and five months of home confinement for receiving cash kickbacks for diagnostic testing referrals of her patients, U.S. Attorney Paul J. Fishman announced.

The owner and three other executives of the now-closed Sacred Heart Hospital and four physicians affiliated with the former west side facility were indicted on federal charges alleging that they collectively paid and received hundreds of thousands of dollars in illegal kickbacks in exchange for the referral of hospital patients who were insured by Medicare and Medicaid. Sacred Heart allegedly paid physicians bribes and kickbacks to induce patient referrals and increase the patient census, which, in turn, increased hospital revenue.

The OIG alleged that Henry Schein offered and paid remuneration to customers that are members of its Henry Schein Medical Privileges Program in the form of points redeemable for products and services, which do not qualify as "discounts" or "rebates" under the anti-kickback statute.

Eugene Goldman, M.D., 55, of Philadelphia, was sentenced today to 51 months in prison and a $300,000 fine for conspiring to violate the anti-kickback statute and violating the anti-kickback statute in relation to his role in a kickback scheme arising from his employment as the Medical Director at Home Care Hospice Inc. (HCH).

United General Hospital - Public Hospital District 304 (UGH), Washington, agreed to pay $74,067 for allegedly violating the Civil Monetary Penalties Law provisions applicable to physician self-referrals and kickbacks. The OIG alleged that UGH paid remuneration to a physician in the form of excessive compensation for services performed at its facility.

The OIG alleged that Mercy paid remuneration to a physician owned real estate company in the form of not collecting net profits from the real estate company due under an agreement between Mercy and the real estate company. Further, this agreement established Mercy's right to forty percent of the net profits the real estate company and Mercy obtained as joint owners of a property.

The OIG alleged that St. Vincent's paid remuneration to a sports medicine practice in the form of payment for Durable Medical Equipment (DME). Specifically, the OIG alleged that St. Vincent's arranged to purchase DME prescribed by the sports medicine practice physician for their patients' inpatient stay directly from the sports medicine practice.

Molina Healthcare of Florida, Inc. (Molina), Florida, agreed to pay $257,111 for allegedly violating the Monetary Penalties Law provisions applicable to physician self-referrals and kickbacks. The OIG alleged that Molina offered to increase the capitation rates paid to four physicians in exchange for the referral of their patients to Molina and did increase the capitation rates of two of the four physicians.

The government has intervened in a False Claims Act lawsuit against Infirmary Health System Inc. and its related entities: IMC-Diagnostic and Medical Clinic P.C., Diagnostic Physicians Group P.C. and Infirmary Medical Clinics P.C., the Department of Justice announced today. The lawsuit alleges that IMC-Diagnostic and Medical Clinic, in Mobile, Ala., billed Medicare for services referred by Diagnostic Physicians Group physicians, in violation of the Stark Law and Anti-Kickback Statute. IMC-Diagnostic and Medical Clinic is owned by Infirmary Medical Clinics, a subsidiary of Infirmary Health System, also based in Mobile.Financial arrangements that compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patient needs,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The Department of Justice is committed to preventing illegal financial relationships that corrupt the integrity of our public health programs.”Enforcement of the...